Fallen Rangers weigh stock market return

September 07, 2012|Keith Weir | Reuters

(Russell Cheyne Reuters, REUTERS)

LONDON (Reuters) - Football club Rangers are working on a possible return to the stock market as their new owners seek to rebuild the former champions following their relegation to the bottom tier of the game in Scotland.

The Glasgow club appointed Cenkos Securities on Friday to advise on plans to raise additional funds. Based in London, Cenkos specialises in working with small and mid-cap companies.

Rangers, Scottish champions a record 54 times, collapsed under the weight of their debt earlier this year. They have relaunched with new owners but had to start from the fourth tier of Scottish football.

"From the day the consortium I led became owners of Rangers we have repeatedly stated our intention to raise additional capital for the Club and would explore all avenues, which may or may not include a stock market listing," the club's chief executive Charles Green said in a statement.

"We are still in the preliminary stages of this process and will make further announcements once the Club has been able to consider its plans in further detail," he added.

Scottish clothing company Glenmuir was among the new investors when Green took over the club.

Rangers were on the PLUS Stock Exchange before the club ran into financial problems, while Glasgow rivals Celtic are one of the few clubs who retain a listing.

Investors have shown limited appetite for owning football club stocks, given their high salary costs and the way that setbacks on the field can affect earnings.

Former English champions Manchester United floated in New York last month, the largest sports team IPO on record valuing the club at $2.3 billion (1.4 billion pounds). However, the shares have fallen to $12.85 from an initial $14.

Rangers are currently fourth in the 10-team Scottish Third Division, with two wins and two draws from their first four games since they assumed their new humble status.

Rangers supporters have remained loyal to the club - buying more than 35,000 season tickets. Most other teams in the division are watched by only a few hundred spectators.

BSkyB and ESPN have also both done deals to show a number of Rangers matches, as well as broadcasting games from the Scottish Premier League.